Visiting The ORB Trading Principle | RJO Futures

by Susan Green

February 13, 2017 12:20PM CST

The ORB, or Opening Range Breakout, is one of the most logical, time-tested, and effective intra-day trading strategies used across all markets. There are many variations about how to use this classic entry signal. First, consider the set up or opening range. As every trader knows, market moving developments don’t stop at the closing bell. New inter-market information continues to flow around the clock, even when a trader’s preferred market is closed. Large institutions wait for markets to officially open before placing their orders for the day. For the purpose of this trading strategy, a market’s opening range is defined by its high or low over the first 30 minutes of the trading day. These levels often mark the initial areas of resistance and support. As a general rule, a breakout above the opening range high signals the bulls are growing more aggressive whereas a breakdown through the opening range low suggests the bears are gaining control. Once the opening range is set, a trader could place a “buy stop” above the high and/or a “sell stop” below the low. If the market breaks out at either end of the range by 1-2 ticks, cancel the other working order. The best practice is to cancel entry orders if they haven’t triggered in the first two hours of the trading day. By waiting for a breakout beyond the established opening range, traders can increase the probability that they will be aligned with the day’s dominant trend!

Susan attended the University of Wisconsin Integrated Liberal Arts Program where she received her BA/BE degrees in 1966. After graduating, Susan taught elementary school. In 1980, after watching a family member trade in the pits of the Chicago Mercantile Exchange, she began training with Ira Epstein and G.H. Miller. She passed her Series 3 exam and enrolled in a multitude of technical analysis courses, including: charting, fundamental theory, Gann theory, Market Profile, and seasonal patterns. In 1981, she moved to Rouse Woodstock, which became American Futures, where she helped train brokers to raise equity. In 1982 she formed a trading group and then moved to Refco. In 1994, she joined Jack Carl/Index Futures to pursue the retail hotline business and expand her trading group. In 2011, Susan joined RJO Futures.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.